Which of the following creates an environment that is conducive to product and process innovations and to entrepreneurial activity?
A)communism
B)centrally planned economy
C)privatization
D)command economy
E)lack of strong property rights

Question

Quizplus · Accepted Answer

Privatization creates an environment where property rights are protected and allows individuals to invest and innovate, leading to product and process innovations and entrepreneurial activity. Communism, centrally planned economy, and command economy all have elements of government control and restrictions on individual ownership and innovation, which can hinder entrepreneurial activity and innovation. Lack of strong property rights can also hinder innovation and entrepreneurial activity.

Which of the Following Creates an Environment That Is Conducive